diff --git a/packages/cli/src/config/settingsSchema.ts b/packages/cli/src/config/settingsSchema.ts
index 73e6f7e425..f884a332af 100644
--- a/packages/cli/src/config/settingsSchema.ts
+++ b/packages/cli/src/config/settingsSchema.ts
@@ -644,7 +644,7 @@ export const SETTINGS_SCHEMA = {
             type: 'boolean',
             label: 'Folder Trust Feature',
             category: 'Security',
-            requiresRestart: false,
+            requiresRestart: true,
             default: false,
             description: 'Enable folder trust feature for enhanced security.',
             showInDialog: true,
@@ -653,7 +653,7 @@ export const SETTINGS_SCHEMA = {
             type: 'boolean',
             label: 'Folder Trust',
             category: 'Security',
-            requiresRestart: false,
+            requiresRestart: true,
             default: false,
             description: 'Setting to track whether Folder trust is enabled.',
             showInDialog: true,
diff --git a/packages/cli/src/config/trustedFolders.ts b/packages/cli/src/config/trustedFolders.ts
index e698822186..faec621d5f 100644
--- a/packages/cli/src/config/trustedFolders.ts
+++ b/packages/cli/src/config/trustedFolders.ts
@@ -157,7 +157,7 @@ export function saveTrustedFolders(
 export function isFolderTrustEnabled(settings: Settings): boolean {
   const folderTrustFeature =
     settings.security?.folderTrust?.featureEnabled ?? false;
-  const folderTrustSetting = settings.security?.folderTrust?.enabled ?? true;
+  const folderTrustSetting = settings.security?.folderTrust?.enabled ?? false;
   return folderTrustFeature && folderTrustSetting;
 }